Mr. Vijay Sankeshwar, who is VRL's chairman and managing director, has over 30 years of experience in the transport business. VRL also has a strong and experienced management team.
The company aims to raise approximately Rs. 2 billion through the fresh issuance of 27 million shares.
About the company and the issue
VRL is primarily engaged in the goods transportation and logistics services business; the company also operates a fleet of buses for passenger transport. The company recently ventured into the wind power generation and air charter businesses. VRL, which commenced operations as a proprietary concern in 1976, has a well-established network across the country, comprising 799 owned branches and 1,387 exclusive franchisee offices, and a fleet of 2,486 trucks and 197 buses. In addition, it also has 43 transshipment hubs, which facilitate the hub and spoke business model. The company's promoter is Mr. Vijay Sankeshwar.
In September 2006, the company entered the wind energy business by setting up a wind farm at Kappatgudda in the Gadag district of North Karnataka. It has commissioned 34 wind turbine generators, having a power generation capacity of 42.5 MW, with the assistance of Suzlon Energy Ltd.
In 2006-07, the company reported a net profit of Rs 852.0 million on a turnover of Rs 4,416.2 million. The return on capital employed (RoCE) and return on equity (RoE) was 39.2 per cent and 141.6 per cent, respectively. Included in VRL's 2006-07 net profit is a one-time gain of Rs 1,165 million on account of the stake sale of its media subsidiary.
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